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Accounting Policies of HEC Infra Projects Ltd. Company

Mar 31, 2018

1. 1 Accounting Policies

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Companies (Accounts) Rules2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The Accounts are prepared on historical cost convention and materially comply with the mandatory accounting standards issued by Institute of Chartered Accountants of India.

All the assets and liabilities have been classified as current or non current as per the company’s normal operating cycle and other criteria set out in schedule III to the Companies Act, 2013.

1.2 Use of estimates

The preparation of Financial Statements requires management to make assumptions that may affect reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of financial and the reported amounts of revenues and expense. Actual results could differ from those estimates. Any revisions to accounting estimates are recognized prospectively in current and future projects.

1.3 Inventory Valuation

Inventories are valued at cost or net realizable value whichever is lower. Cost of materials is ascertained on FIFO method.

1.4 Property Plant & Equipment

(a) Property plant & Equipment are stated at cost of acquisition or construction less accumulated depreciation and impairment losses, if any. The cost of an item of tangible fixed assets comprises its purchase price, including import duties and other nonrefundable taxes or levies and any atiributable costs of bringing the asset to its working condition for intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

(b) Advance paid towards acquisition of tangible fixed assets outstanding at each Balance Sheet date, are shown under longterm loans and advances and cost of assets not ready for intended use before the year end, are shown as capital work-inprogress. All costs relating to the acquisition and installation of fixed assets are capitalised until the asset is ready for use.

(c) Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method (SLM) and is systematically allocated over the useful life of an asset as specified in part C of Schedule II of The Companies Act, 2013. In respect of Assets costing less than Rs. 5,000/- the rate of depreciation is taken as 100%. Depreciation is computed pro-rata with reference to the number of days of use during the year.

1.5 Borrowing Costs

Borrowing costs that are atiributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

1.6 Revenue Recognition

Revenue of operating Income is recognized on accrual basis if there is reasonable certainty of its ultimate realization/collection. In respect of rent Income, revenue is recognised on accrual basis except in case where ultimate collection is considered doubtiul.

1.7 Investments

Investments intended to be held for more than a year are classified as long term investments. All other investments are classified as current investments. Long term investments are stated at cost. However provision (if any) for diminution is made to recognize any decline, other than temporary, in the value of investments. Current investments are stated at lower of cost or market value on an individual investment basis.

Current Investments are carried at lower of cost and quoted / fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

1.8 Accounting for employee benefits

(a) Defined Contribution Plan

As per applicable laws the eligible employees of the company are entitled to receive benefits under the provident fund, a defined contribution plan, in which both employees and company make monthly contribution at specified percentage of the covered employee salary. The contributions as specified under the law are paid to the respective provident fund authorities as specified by law as per the scheme framed under the governing laws.

(b) Defined Benefit Plan :

Hec provides for gratuity, A defined benefit retirement plan (the”Gratuity Plan”) covering eligible employees. In accordance with the payment of Gratuity Acr,1972, the gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the tenure of the employment. Liabilities with regard to the gratuity plan are determined by actuarial valuation as of the balance sheet date based upon which, the company contributes all the ascertained liabilities to “HEC INFRA PROJECTS LIMITED EGGAS”(the “Trust”) Trustees administer contributions made to the trust and contributions are invested in specific investments as permitied by law.

1.9 Tax Expense

(a) Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the income tax act, 1961. Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting incomes that originate in one period and is capable of reversal in one or more subsequent periods.

(b) Deferred tax is measured based on the tax rate and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against such deferred tax assets can be realised.

1.10 Contingent Liabilities

A provision is recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outilow will be required and a reliable estimate can be made of the amount of the obligation.

A contingent liability is disclosed when the Company has a possible or present obligation where it is not probable that an outilow of resources will be required to setile it. Contingent Liabilities are not provided for till the same are crystalised. Contingent assets are neither recognized nor disclosed.

1.11 General

i) Income and Expenditure are accounted on accrual basis for all known items.

ii) Miscellaneous Expenditure shown in the Balance Sheet, If any, will be written off over a period of 5 years from the year in which it is incurred.

iii) The Company is in the process of obtaining Confirmation of Balances of Sundry Creditors, Debtors, Loans and Advances which are awaited.

iv) Expenditure in Foreign currency is Nil(Previous year : Nil) and Income in Foreign Currency is Rs. Nil (Previous year : Nil)

v) According to the information available with the Company regarding the suppliers who constituted a Micro Small or Medium Enterprise [MSME] there are no amounts due to Small Scale Industrial Undertaking as on 31.3.2018

vi) Import of goods calculated on CIF basis is NIL.

vii) The Company operates in a Single Segment namely electrification services and hence segment reporting is not applicable.

viii) The Company does not have any employee whose particulars are required to be disclosed pursuant to Rule 5(2) and 5(3) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.


Mar 31, 2016

NOTE-1 : SIGNIFICANT ACCOUNTING POLICIES

HEC Infra Projects Limited is a public company incorporated in India. Its shares are listed on the emerge platform of the National Stock Exchange of India. The Company is engaged in the electrification services. During the year under the review the company came out with an initial public offer of 538800 equity shares of Rs. 10/at a premium of Rs.90/- per share. The new shares rank pari passu with existing equity shares.

The significant accounting policies followed by the company are as stated below:

1. 1 Accounting Convention

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Companies (Accounts) Rules2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The Accounts are prepared on historical cost convention and materially comply with the mandatory accounting standards issued by Institute of Chartered Accountants of India.

All the assets and liabilities have been classified as current or noncurrent as per the company''s normal operating cycle and other criteria set out in schedule III to the companies act, 2013.

1.2 Use of estimates

The preparation of Financial Statements requires management to make assumptions that may affect reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of financial and the reported amounts of revenues and expense. Actual results could differ from those estimates. Any revisions to accounting estimates are recognized prospectively in current and future projects.

1.3 Inventory Valuation

Inventories are valued at cost or net realizable value whichever is lower. Cost of materials is ascertained on FIFO method.

1.4 Fixed Assets

(a) Fixed asset are stated at cost of acquisition or construction less accumulated depreciation and impairment losses, if any. The cost of an item of tangible fixed assets comprises its purchase price, including import duties and other non-refundable taxes or levies and any attributable costs of bringing the asset to its working condition for intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

(b) Advance paid towards acquisition of tangible fixed assets outstanding at each Balance Sheet date, are shown under long-term loans and advances and cost of assets not ready for intended use before the year end, are shown as capital work-in-progress. All costs relating to the acquisition and installation of fixed assets are capitalized until the asset is ready for use.

c) Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method (SLM) and is systematically allocated over the useful life of an asset as specified in part C of Schedule II of The Companies Act, 2013. In respect of Assets costing less than Rs. 5,000/- the rate of depreciation is taken as 100%. Depreciation is computed pro-rata with reference to the number of months of use during the year.

1.5 Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

1.6 Revenue Recognition

Revenue of operating Income is recognized on accrual basis if there is reasonable certainty of its ultimate realization/collection.

In respect of rent Income, revenue is recognized on accrual basis except in case where ultimate collection is considered doubtful.

1.7 Investments

Investments intended to be held for more than a year are classified as long term investments. All other investments are classified as current investments. Long term investments are stated at cost. However provision (if any) for diminution is made to recognize any decline, other than temporary, in the value of investments. Current investments are stated at lower of cost or market value on an individual investment basis.

Current Investments are carried at lower of cost and quoted / fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

1.8 Accounting for employee benefits

(a) Defined Contribution Plan

As per applicable laws the eligible employees of the company are entitled to receive benefits under the provident fund, a defined contribution plan, in which both employees and company make monthly contribution at specified percentage of the covered employee salary. The contributions as specified under the law are paid to the respective provident fund authorities as specified by law as per the scheme framed under the governing laws.

(b) Defined Benefit Plan:

The company has not formulated any specific terms of employment providing for specific requirement benefits. However as per applicable laws, the company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees at retirement, death/disablement while in employment or termination of employment, of an amount equivalent to 15 days salary with reference to the number of completed year of service and last drawn salary. The liability in respect of Gratuity is recognized in accordance with Project Unit Credit Method.

1.8 Tax Expense

(a) Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the income tax act, 1961.Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting incomes that originate in one period and is capable of reversal in one or more subsequent periods.

(b) Deferred tax is measured based on the tax rate and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against such deferred tax assets can be realized.

1.9 Contingent Liabilities

A provision is recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

A contingent liability is disclosed when the Company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. Contingent Liabilities are not provided for till the same are crystallized. Contingent assets are neither recognized nor disclosed.

1.10 General

I Income and Expenditure are accounted on accrual basis for all known items.

ii) Miscellaneous Expenditure shown in the Balance Sheet, If any, will be written off over a period of 5 years from the year in which the same is incurred.

iii) The Company is in the process of obtaining Confirmation of Balances of Sundry Creditors, Debtors, Loans and Advances which are awaited.

iv) Expenditure in Foreign currency is Nil(Previous year : Nil) and Income in Foreign Currency is Rs. Nil (Previous year : Nil)

v) According to the information available with the Company regarding the suppliers who constituted a Micro Small or Medium Enterprise [ MSME] there are no amounts due to Small Scale Industrial Undertaking as on 31.3.2016

vi) Import of goods calculated on CIF basis is NIL.

vii) The Company operates in a Single Segment namely electrification services and hence segment reporting is not applicable.

viii) The Company does not have any employee whose particulars are required to be disclosed pursuant to Rule 5(2) and 5(3) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.


Mar 31, 2015

Corporate Information:

HEC Infra Projects Limited is a public company incorporated in India. Its shares arp listed on the emerge platform of the National Stock Exchange of India. The Company is engaged in the electrification services.

1.1 Accounting Policies

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Companies (Accounts) Rules2014 and the relevant provisions of the Companies Act,2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The Accounts are prepared on historical cost convention and materially comply with the mandatory accounting standards issued by Institute of Chartered Accountants of India. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

The significant accounting policies followed by the company are as stated below:

a) Fixed Assets

Fixed Assets are stated at cost of acquisition including incidental expenses related to acquisition and installation.

b) Depreciation

Depreciation is systematically allocated over the useful life of an asset on straight line method and on pro rata basis, in case of additions; as specified in part C of schedule II of Companies Act, 2013.

c) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results materialise or are known.

I) Income and Expenditure are accounted on accrual basis for all known items.

ii) Miscellaneous Expenditure shown in the Balance Sheet if any will be written off over a period of 5years from the year in which the same is incurred.

e) Others

Retirement and other employee benefits

The Company contributes towards provident fund, family pension fund and superannuation fund which are defined contribution schemes. Liability in respect thereof is determined on the basis of contribution required to be made under the statutes / rules. Provision has been made for gratuity for employees who have put in the qualifying period of service for entitlement of this benefit.

Taxes on income

Tax expense comprises of both current and deferred tax at the applicable enacted / substantively enacted rates. Current tax represents the amount of income-tax payable / recoverable in respect of the taxable income / loss for the reporting period. Deferred tax represents the effect of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

Provisions and contingencies

A provision is recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

A contingent liability is disclosed when tine Company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. Contingent Liabilities are not provided for till the same are crystallized. Contingent assets are neither recognized nor disclosed.

Investment Policy

Long-term investments are carried at cost. Provision, if any required to be made for diminution, is made to recognize a diminution, other than temporary, in the carrying amounts of long-term investments. Current investments are carried individually, at the lower of cost and fair value.

Borrowing costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

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